Short-Term Rentals
Ordinance Amendments
City Council
June 6, 2023
Shari Meads
Senior Planner
1 Project Description
2 Short Term Rentals Ordinance Amendments
• Revise and add new definitions and policies
• Incorporate technical changes including reorganization and the addition of clarifying language to improve
functionality and aid in implementation and enforcement • Review community feedback received since August 2022
What is a Short-Term Rental?
3 Short-Term Rentals (STRs) are the rental of a private residence for less than 30 days
Hosted STR: The homeowner lives and sleeps on site
during the STR period.
Non-Hosted STR: The homeowner does not live
and sleep onsite during the STR period.
Background
4 • Prior to 10/13/2021 - No regulations for STRs, other than prohibiting in most accessory dwelling units, and requiring Transient Occupancy Tax (TOT) and Business Improvement Area (BIA) assessments
• 8/10/2021 and 9/14/2021 - Economic Development Subcommittee directed staff to regulate STRs
• 8/2021 and 9/2023 - Online community survey and virtual public meeting • 10/13/2021 - City Council adopted Ordinance No. ORD-2021-011 to add Chapter 20-48, Short-Term Rentals to the Zoning Code
• 5/17/2022 - Economic Development Subcommittee directed staff to bring forward amendments to stop accepting new non-hosted applications and clarify code enforcement
Background
5 • 08/09/2022 City Council adopted Ordinance No. ORD-2022-008 and Resolution RES-2022-177 to set a maximum number of 198 non-hosted STRs, clarify enforcement penalty information, and establish a STR Permit renewal fee
• 9/23/2022 to 12/18/2022 – Online community survey
• 10/2022 and 12/2022 – Pop-up events throughout the City • 11/14/2023 and 12/12/2023 – Virtual community meetings • 11/16/2023 – Santa Rosa Tourism Business Improvement Area Advisory Board meeting
• 04/27/2023 – Planning Commission Public Hearing
Current STR Standards and Requirements
6 Permit Requirement
198 Non-Hosted Short-Term Rental Permits Citywide
1000’ Separation Between “New” Non-Hosted Short-Term Rentals Overnight Guests = Two per Bedroom (Maximum of 10)
Daytime Guest Allowance = ½ # of Overnight Guests
Parking Requirements = One Space per Bedroom
Quiet Hours = 9 p.m. to 8 a.m. and no Outdoor Amplified Sound Fire and Life-Safety Requirements
Events Prohibited
Neighbor Notification
Current Code Enforcement Penalties
7 Initial Complaint Directed to 24/7 Contact
Short-Term Rentals
Locations and Search Tool
8 https://SRCity.org/STRSearch or visit srcity.org/STR and select “Search STR Permits” Data from 5.8.2023
Current STR Permit Status
9 STR Permits as of May 15, 2023:
Approved /
Issued
Pending / In
Plan Review Denied Withdrawn
TOTAL
PERMIT
APPS
Hosted 59 18 1 7 85
Non-
Hosted 171 15 8 15 209
TOTAL 230 (78%) 39 (13%) 9 (3%) 22 (8%) 291
• 72 renewal applications received
• 4 non-hosted and 1 hosted located in a non-residential zoning district • As of 2021, the City had 69,495 residential units -less than 1% are STRs Current Code Enforcement Status
10 Code Enforcement Status as of May 15, 2023:
• STR related complaints received: 295
• Enforcement cases closed: 280
• Enforcement cases open: 15
• Administrative citations issued: 136
First citation: 98 at $500
Second citation: 25 at $1,000
Third citation: 13 at $2,000
• Assessed penalties: $100,000
Proposed Amendments
11 • Section 20-48.010, Purpose.
Technical changes.
• Section 20-48.020, Application of this chapter.
Technical changes.
Clarify that requirements apply to STR owners, agents, local contacts, short-term renters, and daytime guests of short-term renters. • Section 20-48.030, Definitions.
Technical changes.
Deletion of unnecessary terms.
Addition of definitions for: Renoticing Fee, STR Permit Application – New, and STR Permit Application – Renewal.
Proposed Amendments
12 • Section 20-48.040, Short-Term Rental Permit requirements and limits. Permit requirements: Technical changes and addition of unit type restrictions.
Location requirements and permit limits: Technical changes and addition of policy to limit owners to one hosted and one non-hosted permit.
Initial application: Technical changes, clarify application requirements, remove language related to Operators in Good Standing and New Operators.
Duration of STR Permit: Clarify that permits are valid for one-year and automatically void upon expiration but can be renewed.
Annual Requirement: Clarify renewal process, requirements, and limits.
Proposed Amendments
13 • Section 20-48.040, Short-Term Rental Permit requirements and limits (continued).
Neighbor notification: Clarify notification and renotification requirements.
Transferability: Clarify non-transferability.
Loss of Operator in Good Standing Status: New section to clarify causes for loss of status.
Denial: Technical changes and addition of justifications for denial. Appeals: Clarify appeal process.
Proposed Amendments
14 • Section 20-48.050, Registration requirements.
Technical changes.
• Section 20-48.060, Occupancy and parking requirements. Technical changes.
Clarify parking size requirements consistent with City standards. • Section 20-48.070, Operating requirements (formerly Operational standards). Technical changes.
Reorganize to include general and life safety operating requirements. Add language for outdoor lighting, trash/recycling, water conservation, and exit, fire and emergency signage requirements.
Prohibit outdoor burning.
Proposed Amendments
15 • Section 20-48.080, Enforcement.
Rewritten to clarify enforcement remedies and options and provide an overview of how complaints may be submitted.
New language:
Reenforces local contact failure to respond per requirements constitutes a violation of the permit;
Aligns penalties for STR violations with California Government Code provisions applicable to STRs, and indicates when and how such penalties shall be assessed; and
Establishes circumstances under which revocation proceedings are triggered and clarifies the types of violations that constitute verified violations for revocation proceedings.
16 Proposed Amendments - Changes
After Planning Commission Hearing
• Section 20-48.030, Definitions.
Add language to clarify that Renewal Short-Term Rental Permit applications shall be submitted during the 60-day period prior to expiration of the issued Short-Term Rental Permit.
• Section 20-48.040, Short-Term Rental Permit requirements and limits. Clarify timeframe for submitting Renewal Short-Term Rental Permit Applications.
Add language to clarify that all short-term rental activities must stop if Renewal Short-Term Rental Permit Application not received prior to expiration of existing Short-Term Rental Permit.
These changes are consistent with the revisions
recommended by Planning Commission
Zoning Code Text Amendment Findings
17 • Zoning Code Section 20-64.050(B) requires the following findings to be made for a text amendment:
The proposed amendment is consistent with the goals and policies of the General Plan, and any applicable specific plan.
The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the City.
The proposed amendment is internally consistent with other applicable provisions of this Zoning Code.
The proposed amendment has been reviewed in compliance with the California Environmental Quality ACT (CEQA).
Community Outreach and Engagement
18 • Community outreach and engagement August 2022 to present:
Focus group meetings with industry representatives and neighborhood individuals/groups
Public survey
Pop-up events
Two citywide meetings
Santa Rosa Tourism and Business Improvement Area meeting Sonoma County Action Partnership Roseland Community Building Initiative meeting
KBBF live radio broadcast
Community Outreach and Engagement:
Survey Results Summary
19 • Demographic information (respondents could choose all that apply):
87% of respondents are full-time Santa Rosa residents 76% own residential property in the City
15% live in rental property in Santa Rosa
22% own commercial property in the City
• STR Ownership (respondents could choose all that apply):
87% are not STR owners
13% own an STR in the City or another jurisdiction
• Living proximity to a STR (respondents could choose all that apply):
17% live near a hosted STR
36% live near a non-hosted STR
21% do not live near a STR
36% are unsure if they live near a STR
Community Outreach and Engagement:
Survey Results Summary (continued)
20 • The existing cap of 198 non-hosted STRs citywide:
63% responded that the cap should be unchanged or that fewer non- hosted STRs should be allowed
35% responded that there should be no cap or that more non-hosted STRs should be allowed
3% did not answer
• Should the City limit how many STRs an entity can own:
68% responded yes
29% responded no
3% did not answer
Community Outreach and Engagement:
Survey Results Summary (continued)
21 • The existing 1000-ft minimum distance between non-hosted STRs in single family dwellings:
65% responded that the 1000-foot minimum distance should be unchanged or made larger
29% responded that the 1000-foot minimum distance should be made smaller or eliminated
5% did not answer
• The existing 1000-ft minimum distance between new non-hosted STRs in single family dwellings Downtown:
60% responded that the required minimum distance should be the same as citywide
35% responded that the required minimum distance should be less Downtown
5% did not answer
Community Outreach and Engagement:
Survey Results Summary (continued)
22 • The 1000-ft minimum distance between non-hosted STRs in multi-family units citywide and Downtown:
66% responded that multi-family units should be separated by 1000-feet, more than 1000-feet, or not allowed in multi-family units 29% responded that the required distance should be less than 1,000-feet or removed entirely
6% did not answer
• Code enforcement penalties:
75% responded that the existing penalties are adequate or not harsh enough
19% responded that they are too harsh
6% did not answer
Community Outreach and Engagement:
Results Summary (continued)
23 • Council district in
which respondents live:
1: 4%
2: 12%
3: 11%
4: 33%
5: 6%
6: 6%
7: 5%
• 10% of respondents do
not live within City
limits, and 10% did not
respond
Community Outreach and Engagement:
Advantages Sited
24 Economic benefits (TOT and potential for related activities to increase sales tax).
Positive impact on businesses that support STRs.
Provide a good investment opportunity.
Positive impact on tourism (helping Santa Rosa remain attractive and affordable market).
STR guests frequently visit local attractions/businesses/restaurants. Offer alternative lodging for traveling families and professionals. Allows individuals to keep their homes in challenging economic times. Non-hosted STRs provide greater income/flexibility than long-term rentals. Non-hosted STRs allow families/individuals who live in different places for periods of the year to make money while they are away.
Community Outreach and Engagement:
Disadvantages Sited
25 Non-hosted STRs are hotels/businesses otherwise not allowed in residential. 1000-foot non-hosted separation did not apply to Operators in Good Standing so has not reduced overconcentration.
STRs not subject to same degree of inspections and restrictions so have an unfair advantage over other lodging types.
Each STR potentially removes a residential unit that could be used by someone/a family hoping to live full-time in the community. STRs inflate real estate prices, but neighbors wanting to sell must disclose a STR nearby – potentially negatively impacting home values. Possibility that non-hosted could turn into an incident requires neighbors to be constantly on alert.
Community Outreach and Engagement:
Disadvantages Sited (continued)
26 STRs can pit neighbors against neighbors.
STRs have negative effect on neighborhood cohesiveness and character. STR owners making money at expense of neighbors’ ability to peacefully enjoy their homes/outdoor spaces.
Non-hosted STRs reduce community connections and reduce number of students in schools, community volunteers, and “regulars” at local businesses. Frequent turnover of guests damage feelings of community and safety – guests do not consider impacts on neighbors and do not keep same waking hours of surrounding homes.
Issues
27 • Based on community response, the following potential additional amendments have been identified:
Prohibit non-hosted STRs in residential zones.
Decrease, increase, or eliminate non-hosted STR cap.
Reduce or increase required non-hosted setback.
Provide alternative separation requirement for multi-family units. • Staff and the Planning Commission are not recommending above changes. Implementation may make existing permits filed/issued in good faith non-conforming
Staff has not received direction to make fundamental changes to the Ordinance
Suggestions would be major shift from adopted regulations Planning Commission Review
28 • April 27, 2023: Planning Commission voted 4-2 to recommend proposed text amendments – motion included amendment to prohibit outdoor burning • 4 Commissioners found amendments would provide additional and necessary clarification to regulations – no substantial changes recommended at this time • Two dissenting votes on either side of the issue:
1. Non-hosted STRs are like hotels and are not compatible in residential neighborhoods and are not consistent with the Zoning Code or General Plan.
2. Interest in increasing proposed limitation on the number of non-hosted STR permits a single property owner can obtain from 1 to 3. • Other comments not included in recommendation:
Include different fines for lesser violations.
Require minimum trash receptacle size.
Require minimum two-night stay.
California Environmental Quality Act
29 • Not a project as defined in CEQA Guidelines section 15378, as it has no potential for resulting in physical change to the environment, directly or indirectly. • Not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15060(c)(2) - The activity will not result in a direct or reasonably foreseeable indirect physical change in the environment. • Exempt under CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that these Amendments or their implementation would have a significant effect on the environment. • Exempt under CEQA Guidelines sections 15307 and 15308 because requiring a short-term rental permit program that imposes standards related to water conservation, refuse management, noise, outdoor burning and emergency evacuation serves to further protect natural resources and the environment.
Recommendation
30 It is recommended by the Planning Commission and the Planning and Economic Development Department that the City Council:
1. Introduce an ordinance amending the text of Title 20 of the Santa Rosa City Code, Chapter 20-48, Short-Term Rentals, to revise and add new definitions and policies, and to incorporate technical changes including reorganization and clarifying language to improve functionality and aid in implementation and enforcement.
Questions
31 • Shari Meads, Senior Planner
• Jessica Jones, Deputy Director-Planning
• Jesse Oswald, Chief Building Official
• Lou Kirk, Assistant Chief Building Official
• Paul Lowenthal, Division Chief Fire Marshal
• John Cregan, Police Chief
• Alan Alton, Chief Financial Officer
• Peter Martin, Deputy Director - Water Resources
• Raissa De La Rosa, Deputy Director - Economic Development Short-Term Rentals webpage:
srcity.org/STR
Short-Term Rentals dedicated email address:
[email protected]